Uruguay presents its first “green hydrogen” pilot project for 2022

RIO DE JANEIRO, BRAZIL – As part of an online forum to deepen cooperation in renewable energies between China and Latin America in line with green development, Uruguay’s Deputy Minister of Industry and Energy Walter Verri said that among his Ministry’s promotional policies are tax incentives to incorporate electric vehicles and an extensive charging network.

“We are planning to strongly boost” the expansion of public transport vehicles, he also announced and explained that “to this end, there is an inter-institutional team – comprising the Ministry of Industry, Energy and Mining (MIEM), among other organizations – responsible for identifying and overcoming the obstacles to introducing this technology.”

GREEN HYDROGEN; FIRST STAGE

Verri advanced that the country is analyzing the incorporation of green hydrogen, in a first stage as fuel for heavy transport vehicles, for which a pilot project will be implemented in 2022.

During the forum, Verri highlighted the “long friendship” and “mutually beneficial cooperation ties” – especially in the energy field – between Latin American countries and China.

“Uruguay has been historically committed to multilateralism and internationalism, the unrestricted upholding of international law […] and the building of an inclusive international system, which will not perpetuate inequalities, but rather structural equality between countries,” Verri said.

97% RENEWABLE SOURCES IN URUGUAY

Regarding energy cooperation, Verri recalled that Uruguay has a “sustainable development vision” based on an energy policy approved by all the countries with parliamentary representation. This agreement resulted in the first energy transition, which led the country to achieve an average of 97% share of renewable sources in its electricity matrix.

Uruguay adhered to the Paris Agreement in 2017, “thus honoring the historic agreement to fight climate change and accelerate and intensify the actions and investments required for a sustainable future with low carbon emissions.”

In addition to the share of renewable energies in its electricity matrix – which places Uruguay second in the world, after Denmark – in 2013 the country changed its role in the region and became an energy exporter, mostly of renewable origin, the Ministry’s representative added.

OIL CONSUMPTION

He also recalled that in Uruguay 63% of its primary supply matrix comes from renewable sources, and emphasized that since 2016 biomass has been in first place, above oil and derivatives. “This is very important for us,” he stated.

As an example of this progress, Verri said that Uruguay showed similar figures for oil and derivatives consumption in 1965 and 2020, despite the fact that in 2020 the economy tripled, the population increased 30% and “the number of vehicles multiplied exponentially.”

“With respect to energy development planning mechanisms, we must emphasize the State’s role, which acts as guarantor of the maintenance of clear and stable rules, as a means of enabling the participation and investments by private players,” Verri said, also highlighting the relevance of UTE and ANCAP as the “implementing bodies” of these policies.

“Uruguay has the possibility of developing a globally competitive hydrogen production as a net exporter,” he said, noting that to support these initiatives, Uruguay will certify production with renewable energies, “through Renewable Energy Certificates (CER).”